Excise Duty in Kenya: Which Products and Services Are Affected?

By Avatechtax Team — Avatechtax Consultancy

Excise duty is levied on the manufacture, importation, or supply of specific goods and services listed in the Excise Duty Act 2015. Unlike VAT (which is consumption-based), excise duty is a specific tax aimed at discouraging consumption of certain goods or raising revenue from luxury items.

Excisable Goods and Current Rates

Beer: KSh 142.44 per litre
Spirits and strong drink: KSh 356.04 per litre
Cigarettes: KSh 5,222.57 per mille (1,000 sticks)
Fuel: Petrol KSh 21.95 per litre; Diesel KSh 9.91 per litre
Plastic bags: KSh 150 per kg
Bottled water: KSh 13.35 per litre
Mobile money transfer fees: 15% excise on fees charged

Excisable Services

The Finance Act 2023 expanded excise duty to services, including mobile cellular services (20% excise on airtime), financial services fees, and internet data (15% excise).

Obligations for Manufacturers

Licensed manufacturers must file excise returns on iTax monthly by the 20th, affix excise stamps on applicable goods, and maintain production records for audit. Excise stamps are ordered from KRA and tracked via the Simba system.

Avatechtax advises businesses in excisable sectors on compliance and tax planning. Schedule a consultation.

Excise Duty in Kenya: Which Products and Services Are Affected?

By Avatechtax Team — Avatechtax Consultancy

Our annual guide to financial planning for the new financial year — budgeting frameworks, tax calendar, and growth strategies.

In Kenya's competitive business landscape, staying informed on business matters is not optional — it is the foundation of long-term survival and growth. Businesses that invest in professional guidance consistently outperform those that navigate these challenges alone.

Key Points to Understand

Compliance First: Meeting your statutory obligations protects your business from penalties and reputational damage.
Professional Guidance: Working with a qualified accountant or tax advisor pays for itself many times over in savings and avoided errors.
Record Keeping: Accurate, up-to-date records are the foundation of every financial decision and regulatory obligation.
Planning Ahead: Proactive planning — rather than reactive scrambling — gives your business a measurable financial advantage.

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